Dominion Lending CentresDLCG · #1 for new mortgages · $84.5B in 2025
Case Study · Residential / Alternative

A New Sales Job and Ratios Well Over 50%: An Alternative Lender Financed a Rental House at 80% in North Vancouver

A common-law couple were buying their first property, a two-bedroom detached house on a corner lot in North Vancouver's Central Lonsdale, to rent out, priced at about $1.6 million.

Closed in 2025 · Published October 18, 2026

  • Residential
  • Alternative
  • Purchase
  • Investment property
  • Rental
  • Gift
Purchase price
about $1.6 million
Mortgage
about $1.3 million
Loan-to-value
80%
Credit scores
873 and 790
Rate in 2025
4.95%, three-year adjustable

The Situation

A common-law couple were buying their first property, a two-bedroom detached house on a corner lot in North Vancouver's Central Lonsdale, to rent out, priced at about $1.6 million.

The Challenge

One partner started a sales job in January 2025 at about $150,000 a year, about $60,000 of it an incentive guaranteed only for the first year. The debt-service ratios came to well over 50%, against a usual limit of 44%.

The Solution

In 2025 we placed about $1.3 million with an alternative lender, 80% of the price, on a three-year adjustable term at 4.95% with a 30-year amortization. An alternative lender was the fit because it could take the ratios well over 50%. The file rested on the new job, seven earlier years in a similar role, a paralegal salary of about $58,000 and scores of 873 and 790.

The Outcome

The couple bought their first property months into the new job, with 20% down from savings and a family gift toward closing costs.

Run the numbers

Affordability Calculator

A first property bought as a rental months into a new job. See what your own down payment and income support.

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Income & debts
Monthly liabilities

How lenders count these: car loan = actual payment; credit cards + unsecured personal LOC = 3% of balance each; student loan = 1–1.5% of balance even on a $0 plan.

Mortgage terms
Amortization
Term
Rate type
Housing carrying costs (monthly)

Heat: CMHC standard $100/mo. Condo: only 50% counts toward your housing ratio.

Max purchase price
$738,567
$638,567 mortgage + $100,000 down · limited by down payment
Total monthly debt (stress-tested)$4,550

Qualified at 6.50% (OSFI B-20 stress test).

Two ways to buy

Same income, same down payment — two strategies. Insured pricing assumed ~0.25% below conventional.

Conventional
20% down (uninsured)
$500,000
Down: $100,000 (20.0%)
Mortgage: $400,000
Rate assumed: 4.75%
Monthly payment
$2,075/mo
Principal & interest at 4.75% over 30-yr amort
Saves $19,796 in CMHC premium
− Extra interest @ +0.25% over 5-yr term: $4,750
Est. net savings: $15,046

Limited by 20% down rule — extra income capacity is unused.

Insured
Less than 20% down (CMHC-insured)
$738,567
Down: $100,000 (13.5%)
Mortgage: $638,567
Rate assumed: 4.50%
Monthly payment
$3,320/mo
Principal & interest at 4.50% over 30-yr amort
+ CMHC premium: $19,796 (financed)
Total loan w/ premium: $658,363
30-yr insured amort (first-time buyers / new builds only) adds a 0.20% premium surcharge — not included above.

Limited by income — your cash covers more than the minimum down at this price.

What this calculator does that most don't
  • Models liabilities the way lenders actually do: credit cards at 3% of balance, student loans at 1–1.5% of balance even on $0 payment plans
  • A multi-property builder that applies 100% rental add-back to income and full carrying costs to TDS — portfolio buyers get real numbers
  • Compares insured vs conventional side by side, netting the CMHC premium saved against the extra interest of the higher conventional rate
  • Discloses the exception ratios brokers actually place files at: A-lenders to 50/50, alternative lenders to 60/60 — numbers no bank calculator will print
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Contract vs stress-test payment

Lenders qualify you on the taller bar — even though you actually pay the shorter one. That's the OSFI B-20 stress test in one picture.

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Exceptions — you may qualify for more▾
  • • Conventional (A-lender) — strong files: as an exception, may be considered up to 50% / 50% GDS / TDS.
  • • Alt-lender (minimum 20% down): up to 60% / 60%, and even higher at ≤65% LTV.
  • • Insured deals (< 20% down): hard capped at 39% / 44% — no exceptions.

This calculator shows the standard 39/44 case. Exceptions depend on file strength and lender — get in touch to find out your true qualification.

Questions and answers

Questions about this file

Can you get a mortgage months into a new job?+

This couple did. In this 2025 file one partner started a sales job in January 2025 at about $150,000 a year, and an alternative lender financed a North Vancouver rental house at 80%, resting on the new job and seven earlier years in a similar role.

Why was an alternative lender used?+

Because the ratios were well over 50%. In this 2025 file the usual limit was 44%, and an alternative lender was the fit because it could take the ratios well over 50%.

Can your first property be a rental?+

Yes. In this 2025 file the couple's first property was a two-bedroom detached house on a corner lot in North Vancouver's Central Lonsdale, priced at about $1.6 million and bought to rent out.

What carried the file besides the new job?+

Seven earlier years in a similar role, a paralegal salary of about $58,000 and scores of 873 and 790, in this 2025 file.

What were the terms?+

About $1.3 million, 80% of the price, on a three-year adjustable term at 4.95% in 2025 with a 30-year amortization. The 20% down came from savings, with a family gift toward closing costs.

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